Sunday, March 31, 2013

The most important financial video I've seen in years

I can't recommend this video report from financial analyst and investment advisor Grant Williams too highly.  In forty minutes, he analyzes risk in today's economy and financial system, from the perspective of the investor.  Most of us aren't investors, of course:  but we'll be affected just as badly (if not more so) by any economic crash.

Mr. Williams covers fractional reserve banking, quantitative easing, inflation, interest rates, the supply of gold (and how it's been undermined by leasing), and a host of other factors.  Finally, he brings everything together, and shows how the present Cyprus crisis might - might - be the start of the Great Unraveling, when all these elements implode together.

I regard this as absolutely essential viewing for anyone who's interested in the current state of the world economy and its financial systems.  If you've followed my articles on the subject, and the references I've made to others' articles, this will bring many of those threads together.  Frankly, if you want to be fully informed of what's going on right now, I don't think you can afford not to watch this.  It's that important.

See what I mean?  For further reading, see:

Casey Research - 'Preparing For Inflationary Times';

Zero Hedge - 'How Cyprus Exposed The Fundamental Flaw Of Fractional Reserve Banking' (this is a very important article);

Zero Hedge again - '25 Lessons From The Cyprus Deal';

David A. Stockman - 'State-Wrecked: The Corruption of Capitalism in America'.



Anonymous said...

Thank you for posting this. I am very careful mentioning this sort of info, as either the folks are already "in the know", or they look at me like I am insane. "Problem? what problem? We are just in a slow recovery."
Most are like tourists, wandering on the mysteriously exposed ocean shallows happily picking up the flopping fish while the natives are screaming "get off the beach!!".

Anonymous said...

While I agree with all of the points on the incredibly underestimated current risk, I do worry about putting too much faith in gold as a hedge. If the major governments of the world become too concerned about the price of gold rising too quickly, all they would need to do is announce a 90% capital gains tax on profits from the sale of gold or just ban the sale altogether (kinda like the punishments they have talked about on short selling), and the value would plummet. Some isn't a bad idea, but the idea of gold being risk free just isn't consistent with history. Witness FDR's war on gold in the US not that long ago...

Peter said...

@Anonymous at 9.00 PM:

To a certain extent, you're right, but gold (and, to a lesser extent, silver) still gives you options.

1. If inflation goes through the roof, and fiat currencies' values collapse, gold and silver will remain stores of value. Their price will reflect their stability in that sense.

2. If a government wants to slap a capital gains tax on metals, it'll doubtless catch many who are foolish enough to store their gold in banks or under other peoples' control. If you keep it in your own hands, that's a different story. I wonder how many 'burglaries' will immediately result, wherein the owner's store of physical gold was tragically 'stolen'?

3. After FDR's raid on gold in the 1930's, there were an amazing number of wealthier Americans who took unscheduled trips across the border to Canada (in cars that were well weighted down), or booked transatlantic passages that included a visit to Switzerland. I'm noting a number of such signs right now. For example, check out the expatriate community gathering in La Estancia de Cafayate, Argentina. Some of the names (and their bank balances) might surprise you. An introductory article is:

I think there will always be ways to evade or avoid such government intrusion. It depends how far you're prepared to go.

Anonymous said...

it was always my assumption the x ray scanners at the ports were intended to find money. Capital controls are on the way.
anon 523

HerrBGone said...

Thank you for the link. We finally had the chance to watch this evening. Well worth the investment in time.